Learning Center
Inheriting a Home in Texas: What Families Should Understand
Key distinctions between appraisal values, tax basis, fair market value and title — explained simply.
Four values that are often confused
County appraisal value is used for property taxes. Fair market value is what a willing buyer would pay. Federal income tax basis is used to figure gain when property is sold. Estate valuation is used for estate purposes. These are related but different.
A common misunderstanding
Requesting a county property tax reappraisal does not automatically create a federal income tax basis adjustment.
Community property and surviving spouses
Qualifying Texas community property may receive a federal income tax basis adjustment after a spouse's death, subject to applicable law and individual facts. Certain surviving spouses may also qualify for special home-sale capital gains exclusion treatment, subject to IRS requirements.
Please consult a qualified tax professional or attorney. We do not calculate tax liability or provide tax advice.